Radio Ownership Regulations Upholded by Appeals Court

Radio Ownership Regulations Upholded by Appeals Court

FCC's Decision on TV and Radio Ownership Rules Sparks Debate

The U.S. Court of Appeals for the Eighth Circuit has made a significant decision regarding the Federal Communications Commission's (FCC) ownership rules for both television and radio broadcasters.

The court has vacated the "top-four" prohibition in the Local Television Ownership Rule, allowing a broadcaster to acquire two TV stations ranked in the top four in audience share in a market. However, the two-station limit remains intact. This decision does not affect the Local Radio Ownership Rule, which continues to limit radio broadcasters to owning up to eight commercial radio stations in the largest markets, with a subcap of five on each band (FM/AM).

The FCC's 2018 rule review, conducted under the previous Democratic administration, was the subject of this legal case. The court upheld the FCC's local radio ownership rules, dismissing arguments that the regulations were unjustified, that they disregarded evidence of the demise of radio, and that they disregarded benefits of consolidation for broadcasters.

The court's decision on the top-four rule was met with approval by FCC Chairman Brendan Carr, who has been a critic of the rule and its impact on local broadcasters. Carr stated that the court's decision is a step towards promoting the public interest and making it easier for local sources of news and information to compete in the current media environment.

The National Association of Broadcasters (NAB) welcomed the decision to vacate the "top-four" prohibition. NAB President/CEO Curtis LeGeyt called the decision a "major step forward" for local television broadcasters. However, LeGeyt expressed disappointment that the court did not address the decades-old radio ownership restrictions, a point of disappointment for him in a previous statement.

The current radio ownership rules in the U.S., set by the FCC, limit the number of radio stations one entity can own within a local market. These rules have remained largely unchanged for over two decades. The NAB is seeking to modernize these rules as part of a broader push backed by industry groups to reduce regulatory burdens. This effort includes challenging outdated reporting requirements and ownership limits that do not fully reflect today’s competitive media environment.

In summary:

| Aspect | Current Rule/Status | NAB Position/Proposed Change | |-------------------------------|-------------------------------------------------------|----------------------------------------------------------| | TV ownership caps | Top-four prohibition vacated, two-station limit remains | Seek further modernization | | Radio ownership caps | Up to 8 stations per market, max 5 AM or FM | Seek modernization reflecting new competitive realities | | Biennial ownership reports | Required every two years | Suspended for 18 months due to burden and limited value | | Rationale | Limits ownership concentration; reporting ensures transparency | Rules outdated; competition includes streaming, digital platforms |

These efforts are part of ongoing FCC quadrennial reviews mandated by the Telecommunications Act of 1996, where broadcasters like NAB push for regulatory relief and modernization to better fit today's media market. The significance of modernizing these rules lies in the changing media landscape, where traditional radio competes with digital streaming and other audio platforms. The NAB argues that the current ownership caps and reporting requirements do not account for this competition, thus modernizing the rules could allow radio broadcasters more flexibility to compete effectively and invest in new content and technology.

LeGeyt also expressed hope that new FCC Chairman Brendan Carr will help the FCC modernize its local radio ownership rules. The FCC's suspension of the biennial ownership reports filing requirement for 18 months, which the NAB and others had argued was costly and burdensome with limited public benefit, reflects the FCC’s attempt to lessen regulatory burdens on media companies.

1. In the current media landscape, where traditional radio competes with digital streaming and other audio platforms, the National Association of Broadcasters (NAB) argues that modernizing the radio ownership caps, as set by the FCC, could allow radio broadcasters more flexibility to compete effectively and invest in new content and technology.
2. The NAB seeks to modernize the current radio ownership rules, as part of a broader push to reduce regulatory burdens and challenge outdated reporting requirements and ownership limits that do not fully reflect today’s competitive media environment.
3. The NAB has expressed hope that the new FCC Chairman, Brendan Carr, will help the FCC modernize its local radio ownership rules, potentially marking a significant shift in the media industry's regulations to better accommodate emerging technologies in audio media.

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